JESSICA van VONDEREN: Back home and to a power struggle like no other a proposal to connect North-west Queensland to the national electricity grid, via a billion dollar transmission line at Townsville, is looking unlikely. The project was to pave the way for a world-class clean energy corridor. It was also tipped to feed the increasingly power-hungry needs of the north-west minerals province for years to come. But as Penny Timms reports the lines biggest proposed user pulled its support and the project's future is in disarray.

PENNY TIMMS: For a short time, it seemed like outback Queensland was to get the power it desperately needs. Proprietors of a billion dollar transmission line had all but sealed a project to connect the resource rich north-west minerals province to the national electricity grid. The line was to run from Townsville to Mount Isa; the aim to feed green energy back into the grid, catering for a so called clean energy sector. Without power, the giant mining and resources industry cannot flourish. More power would pave the way for new mines to come on line boosting mining and Government coffers. But mining giant Xstrata literally pulled the plugged it's chosen to get its power in other ways. That decision casts doubt over the project's viability and locals believe they are back where they started.

BOB KATTER, FEDERAL MEMBER FOR KENNEDY: They have launched upon a decision which is good for their company, which is absolutely disastrous for the rest of us.

JOHN WHARTON, RICHMOND MAYOR: The big Carpentaria mineral province needs a lot of energy and those guys that can't get cheaper energy; they're burning a lot of diesel.

PHILIP ALEXANDER, McKINLAY, DEPUTY MAYOR: I can understand why they've done it; they've done it as commercially and they've thought locally, which they are local with the Cloncurry Mount Isa region. I think they should be thinking more regionally, that's my own point of view, but I can understand why they've done it.

PENNY TIMMS: But understanding why doesn't make it easier to accept because power is the lifeblood of economic growth.

PHILIP ALEXANDER: We of course don't like what they've done because it's put a spanner in the works; but I understand where they're coming from but I think they need to think more regionally. I don't think regionally they would be very all these shires wouldn't be too happy with what's happened, no.

PENNY TIMMS: The transmission line was known as CopperString. While it was a pure commercial venture; it had the support of politicians from all persuasions. Mayors from Townsville to Mount Isa saw it as an opportunity to create a clean energy corridor unlike anything in existence.

JOHN WHARTON: There's probably a great cross section of them but solar and wind lab the wind farm stand out to pretty well because wind farms out here don't worry anyone. You know, in smaller settled areas you get a lot of complaints. But out here, you've got wide open spaces and the wind farm could be sitting in the middle of a 10,000 acre paddock and it's not going to be a problem to anyone.

PENNY TIMMS: There were also hopes of other benefits could a clean energy plant turn the noxious weed prickly acacia into a bio-fuel?

JOHN WHARTON: And that's a really big one, this is the hard prickly acacia here in the Hughenden, Richmond, Julia Creek area and it's the thickest prickly acacia in Queensland, probably in Australia.

PENNY TIMMS: Xstrata was invited to be a part of this story but a representative said there was no one available for interview. In a written statement the company says its decision was a commercial one which will secure Mount Isa's power needs for more than a decade. Federal Member for Kennedy, Bob Katter, says Xstrata's decision is short-sighted.

BOB KATTER: Inland north Queensland is now left on an island bereft of water in this case bereft of electricity. Now there's one little group over here who are very powerful, they've got all the water and they're laughing all the way to the bank. The rest of us, we got nothing.

PENNY TIMMS: He says regional development will suffer if northern Queensland can't access more power.

BOB KATTER: If you want to open up a mine in this area you will have to go to diesel. Now I'm not worried about carbon, there's a lot of people that are, that is absolutely disastrous for a carbon outcome.

PENNY TIMMS: Rural towns were also counting on an influx of workers and that's dried up too.

JOHN WHARTON: The development of it was going to start here in Richmond, then they were going to work east and west and it was going to be a 200 to 300 man camp here, so for 18 months that's a good little hit for our community and we were looking forward to it

PENNY TIMMS: Work has already begun to create a new housing and industrial estate at Julia Creek to cater for the expected growth; CopperString was to help financially.

PHILIP ALEXANDER: When they set up, for instance they were setting up in our new development down there; they were prepared to put dollars into it to help while they were here so it's a big impact.

PENNY TIMMS: Supporters of CopperString say even without Xstrata, the project should still go ahead but without private investment the State and Federal Governments would have to cover the costs.

PHILIP ALEXANDER: It's time for the Federal Government to stand up on what it says about carbon tax that's gone through Parliament so it's time now to stand up and be counted on clean, green, energy. If they want that this is a great development for Australia, and especially northern Australia which seems to miss out a lot so it's time now to back it up.